UK government to drop net zero from public procurement, prioritize job creation

The British government will remove net‑zero, modern‑slavery and diversity, equity and inclusion (DEI) requirements from its public‑procurement rules. Louise Haigh, the minister overseeing Whitehall operations, said the existing framework “tried to tick too many boxes” and that “if you prioritise everything, you’re prioritising nothing.”

A new “social value” model will replace the old system, giving double weighting (20 %) to job‑creation criteria on contracts worth £5 million or more, while rewarding firms that pay above the national minimum wage, retain staff and provide training in deprived areas. The Cabinet Office plans to publish guidance in the autumn, with the new rules taking effect from January 2027. The change is intended to channel the £90 billion annual procurement spend toward British jobs and local communities, addressing concerns that previous rules crowded out small and medium‑sized enterprises.